Bitfinex Secures Digital Asset License in El Salvador, Binance Staggers in Australia
Bitfinex Secures Digital Asset License in El Salvador, Binance Staggers in Australia
Bitfinex can now legally facilitate the issuance and trading of digital assets in El Salvador under its newly-established subsidiary Bitfinex Securities El Salvador.
The country granted its first Digital Asset Service Provider (DASP) license to the British Virgin Islands-registered crypto exchange three months after it passed the Digital Assets Issuance Law.
El Salvador is a known Bitcoin advocate and owns more than 2,300 BTC on its balance sheets. It is also the first to launch Bitcoin-backed bonds known as “Volcano bonds.”
In a Twitter announcement, Bitfinex celebrates its milestone as the first international digital asset platform to secure a DASP license. It cited this could be the start of greater financial freedom in Latin America.
Under its recently-acquired DASP status, Bitfinex will follow clear guidelines on the rights and obligations stipulated in trading tokenized shares and yield-bearing assets under the Digital Assets Issuance Law.
While Bitfinex celebrates its latest feat in El Salvador, the Australian Securities and Investment Commission (ASIC) orders the cancellation of the Binance Australia Derivates license.
The US Commodities Futures Trading Commission accused Binance of illegally operating derivates trading in the United States just weeks before.
The Australian regulatory body's decision came after conducting a targeted review of Binance's financial services in the country in February.
In the same month, the CZ Zhao-founded crypto platform announced it had “mistakenly' classed 500 of its Australian derivates traders as wholesale or investors qualified. It promised to issue full compensation for their losses while trading derivatives on Binance.
Following the move, ASIC issued a notice of hearing reckoning whether to cancel or suspend Binance's license in the country in March.
Binance is witnessing major investment outflows. It recorded $2 billion worth of exits two weeks ago.
